By Office of Lieutenant Governor Stavros Anthony / Press Release
Nevada Small Business Tax Relief Act Would Double Payroll Tax Exemption and Expand Eligibility to Businesses With Up to 50 Employees, Helping Local Businesses Keep More of Their Hard-Earned Money
LAS VEGAS, NV – Nevada Lieutenant Governor Stavros Anthony is proposing the Nevada Small Business Tax Relief Act for the 2027 Legislative Session, a measure designed to deliver meaningful tax relief to Nevada’s small businesses, encourage job creation, and strengthen local economies across the state.
The proposed legislation would double the quarterly Modified Business Tax (MBT) payroll exemption from $50,000 to $100,000 and increase the maximum employee eligibility cap from 20 to 50 employees. The proposal would expand tax relief to more qualifying Nevada small businesses while leaving the existing exemption for larger employers unchanged.
“Small businesses are the backbone of Nevada’s economy, and they deserve more than a pat on the back — they deserve a break,” said Lieutenant Governor Stavros Anthony.
“While government talks about attracting the next big company to Nevada, we cannot forget the small businesses that are already here, creating jobs, making payroll, and investing in our communities. My proposal is simple: let Nevada’s small businesses keep more of the money they earn so they can hire more workers, raise wages, grow their businesses, and strengthen our economy. By doubling the payroll exemption and expanding eligibility to businesses with up to 50 employees, we can provide meaningful relief to more of Nevada’s job creators. Government shouldn’t stand in the way of small-business success — it should help clear the way.”
Key Benefits for Nevada Small Businesses:
- Double the tax exemption: Increase the quarterly payroll tax exemption from $50,000 to $100,000 for qualifying small employers.
- Expand eligibility: Raise the maximum employee cap from 20 to 50, allowing more Nevada small businesses to qualify for the enhanced exemption.
- Real tax savings: Eligible businesses could save up to $2,340 annually under the proposed exemption and the current 1.17% general-business MBT rate.
- More money for employees: Free up resources for hiring, wage increases, employee benefits, and workforce training.
- Support for local growth: Allow businesses to reinvest savings in equipment, inventory, technology, and expansion.
- No new government red tape: Deliver tax relief through the existing MBT filing process, without separate applications or bureaucratic approvals.
- Targeted relief: Focus the additional tax benefit on qualifying small businesses rather than extending it to Nevada’s largest employers.
Under the proposal, a qualifying small business with $100,000 in quarterly taxable payroll would see its Modified Business Tax liability on that payroll reduced from $585 per quarter to zero. This is a potential annual savings of $2,340.
“Nevada should be the best state in America to start a small business, operate a small business, and grow a small business,” Anthony added. “That starts with letting our entrepreneurs and job creators keep more of their own money. By expanding eligibility to businesses with up to 50 employees, we can extend this opportunity to more of the small businesses that drive Nevada’s economy.”
The Nevada Small Business Tax Relief Act is being led and prepared by Lieutenant Governor Stavros Anthony for consideration during the 2027 Nevada Legislative Session.
Source: Office of Lieutenant Governor Stavros Anthony press release.